In Which of the Following Econometric Problems Do We Find

question 9

Multiple Choice

In which of the following econometric problems do we find Durbin-Watson statistic being far away from 2.0?

• A) the identification problem
• B) autocorrelation
• C) multicollinearity
• D) heteroscedasticity
• E) agency problems

---

Definitions:

Cease-fire

An agreement to stop hostilities temporarily during a conflict, allowing for negotiation, humanitarian aid, or the resolution of disputes.

Policies of Containment

Strategies aimed at preventing the expansion of a hostile power or ideology, most notably associated with the United States' approach to combating the spread of communism during the Cold War.

Jawaharlal Nehru

The first Prime Minister of India, serving from 1947 until 1964, and a central figure in Indian independence and the shaping of modern India.

Soviet Union

A former federal socialist state in Eastern Europe and northern Asia, existing from 1922 to 1991, known for its centralized economy and government.